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Oracle Payables Implementation Guide
Release 12.1
Part Number E12795-04
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Positive Pay Setup

Setting Up Positive Pay

A positive pay file is a security measure in the form of a document that the deploying company sends to its payment system or bank to inform it of payments made by check.

To set up positive pay, perform the following steps:

  1. Navigate to the Update Payment Process Profile page in Oracle Payments.

  2. In the Positive Pay region, specify data for four parameters and select the Automatically Transmit File check box.

For more information on setting up positive pay, see the Specifying Positive Pay Information section within Step 12. Setting Up Payment Process Profiles, Oracle Payments Implementation Guide.

Automatic Interest Prompt Payment Support

To set up Payables to automatically create interest invoices for a supplier site:

  1. In the Interest region of the Payables Options window, enable the Allow Interest Invoices check box, enter the Expense account, the Liability account, and enter the Minimum Interest Amount.

    (Optional) Enable the Prorate Across Overdue Invoice check box. See: Invoice Payables Options.

  2. In the Payables Options window enable the Recalculate Scheduled Payment option if you want Payables to automatically recalculate scheduled payment due dates, discount dates, and discount amounts during Invoice Validation. See: Matching Payables Options.

  3. Ensure that appropriate suppliers have the Allow Interest Invoices check box enabled. See: Payment Region of the Suppliers and Supplier Sites windows, Oracle Payables User Guide.

  4. Set up the interest rates that Payables will use to calculate interest on overdue invoices. See: Interest Rates.

  5. Optionally create a remittance advice format you want to use when you pay interest invoices, and assign it to a payment program. See: Oracle Cash Management User Guide.

Enabling Automatic Offsets

If you enable Automatic Offsets, Payables automatically balances invoice and payment lines that cross balancing segments by creating offsetting entries for each balancing segment.

Automatic Offsets is a powerful feature that greatly affects processing throughout Payables. For a full account of its impact, see: Automatic Offsets, Oracle Payables User Guide.

To enable Automatic Offsets:

  1. In the Accounting region of the Payables Options window, choose Account or Balancing as your Automatic Offset Method. See: Accounting Payables Options.

    Important: Carefully consider this option before setting it. Changing your automatic offset setting after the system records accounting information can result in slow performance of the Payables Accounting Process. Further, changing this option can result in serious accounting irregularities in the following circumstance: If you make a partial payment and then adjust the invoice (for example, add a distribution), and if you change the setting of this option between the time the original invoice is accounted and the final payment.

  2. Also in the Accounting region, set your value for the Prevent Prepayment Application Across Balancing Segments Payables option.

  3. In the Payment region of the Payables Options window, choose System Account as your Discount Distribution Method if you want Payables to prorate discounts across your invoice distributions when you pay an invoice that crosses multiple balancing segments. The balancing segment from the offsetting invoice distribution replaces the balancing segment of your system Discount Taken account when Payables builds the accounts for these entries. See: Payment Payables Options; Accounting Financials Options.

  4. When you set up your bank accounts, check the Pooled Account box in the Payables Options region of the Bank Accounts window if you want to create a pooled account. See: Defining Banks, Oracle Cash Management User Guide.

    The cash in a pooled bank account is shared by multiple balancing segments; the cash in a non-pooled bank account is associated with a single balancing segment.

    When you create a payment from a pooled bank account using Automatic Offsets, Payables automatically builds the cash account for each payment line on the basis of the bank account's associated cash account using your chosen Automatic Offset method.

    Important: When you make a payment using a non-pooled bank account, Payables generates only a single cash offset even if Automatic Offsets is enabled. For payment lines that cross balancing segments, you can either enter balancing entries manually, or set General Ledger up to create them automatically on posting. For details, see: Intercompany Accounting, Oracle Payables User Guide.

Related Topics

Automatic Offsets, Oracle Payables User Guide

Intercompany Accounting, Oracle Payables User Guide

Payables Options

Setting Up Payables for Budgetary Control


To set up Payables for Budgetary Control:

Related Topics

Checking Funds for Invoices, Oracle Payables User Guide

Invoice Validation When You Use Budgetary Control, Oracle Payables User Guide

About Budgetary Control and Online Funds Checking, Oracle General Ledger User's Guide

About Funds Checking, Oracle General Ledger User's Guide

Reviewing Encumbrances, Oracle General Ledger User's Guide

Reviewing Budgetary Control Transactions, Oracle General Ledger User's Guide

Encumbrances in Payables, Oracle Payables User Guide

Setting Up Intercompany Accounting

Your general ledger department usually sets up intercompany accounting for you. For your information, the following are the setup steps for intercompany accounting:

To define Intercompany Accounts:

  1. Define your accounts so that one of the segments is a company segment. Specify that the company segment is a balancing segment. See: Defining Intercompany Accounts, Oracle General Ledger User's Guide

  2. Define multiple companies by defining values for your company segment.

  3. Define your ledgers, and specify one intercompany account for the ledger. See: Defining Ledgers, Oracle General Ledger Implementation Guide.

  4. In the Intercompany Accounts window in Oracle General Ledger, specify the journal entry source (Payables), a journal entry category (invoice or payment), whether the balancing entry is a debit or credit, and the account to which Oracle General Ledger should post the balancing amount. You do not need to define accounts for every company because Oracle General Ledger substitutes the appropriate company when it creates balancing entries.

Related Topics

Intercompany Accounting When You Use Oracle General Ledger, Oracle Payables User Guide

Automatic Offsets, Oracle Payables User Guide

Petty Cash Funds

Setting Up a Petty Cash Fund


To set up a petty cash fund:

  1. Set up administrative and control procedures:

    Create a petty cash agreement that specifies all the policies regarding petty cash reimbursements. Your petty cash administrator should sign the agreement, or agree online if you use an electronic template.

    Create a standard petty cash reimbursement form or electronic template for employees to complete and submit to the administrator with their receipts.

    Create a standard petty cash reimbursement log to be submitted by the administrator when requesting cash to replenish the fund. The reimbursement log breaks down expenses by account, lists total disbursements for each account, and shows the balance of the fund.

  2. Set up supplier records:

    Decide how you want to establish supplier records for your petty cash administrators. Consider the following two approaches and set up supplier records with the approach that best meets your business needs:

    Enter a supplier record for the employee acting as a petty cash administrator. See: Entering employees as suppliers.



    Enter one supplier record named "PETTY CASH" and create a site under this supplier in the name of the employee acting as a petty cash administrator. For example:

    You may want to create this supplier record with a unique Pay Group or Payment Priority. This can facilitate any special handling you may need to do with petty cash payments.


  3. The petty cash administrator submits a petty cash request to the accounts payable department for the amount of the new fund. The request includes all necessary approvals. The petty cash administrator signs the petty cash agreement or agrees online if you use an electronic template. The accounts payable department provides the administrator with the petty cash reimbursement form and the petty cash reimbursement log.

  4. Enter the petty cash request as a standard invoice. Charge the amount to the petty cash GL account. You may want to use a standard invoice naming convention for the initiation of a new petty cash fund. The use of a standard invoice name can assist in research and reconciliation. For example, you may want to use "IPC" for "Initiate Petty Cash" and the date of the request.

  5. Pay the petty cash administrator for the fund amount.